Glossary · DeFi
Slippage
Also: price impact
Slippage is the difference between the price a trader expects and the price actually received, widening with trade size relative to available liquidity and with delay between quote and execution.
Related terms
- Automated market maker
- An automated market maker is a decentralized exchange design that prices trades from a formula applied to pooled reserves rather than from an order book, so a trade can always execute against the pool at some price.
- Liquidity pool
- A liquidity pool is a smart contract holding reserves of two or more tokens that traders swap against at a price set by a formula, with the depositors earning a share of trading fees.
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